Real estate income tax

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The real estate income tax (ImmoESt) is a special form of collection of income tax in Austria on profits from the sale of real estate or land.

Survey forms

Income tax (ESt) is either collected or paid by party representatives (lawyers, notaries) by way of self-calculation by way of real estate income tax (ImmoESt), calculated through voluntary inclusion in the tax return (assessment option) or taxed at the regular tax rate (standard taxation option).

Self-calculation

The ESt attributable to the sale of the property is to be paid by way of ImmoESt. In the self-calculation, a tax of 30 percent is levied on profits from private property sales. The taxpayer must submit documents to the representative (lawyer, notary) for determining the tax base and confirm its accuracy. The party representatives have to pay ImmoESt and are liable for its payment. This income is then "final taxed"; With the payment of the ImmoESt, the income tax is considered settled. The profit no longer has to be declared in the tax return.

If the taxpayer is a corporation , the tax rate is 25 percent.

Investment option

In addition to the self-calculation, it can be advantageous to apply for voluntary inclusion in your tax return while maintaining the tax rate of 30 percent. If a profit is generated from the sale of a private property, this can be offset against another loss on disposal by way of an income tax assessment. The tax is then paid through a special advance payment. In addition, the assessment option can be used to correct an incorrect self-calculation.

If the taxpayer is a corporation, the tax rate is 25 percent.

Standard taxation option

In contrast to the self-calculation and the assessment option, there is no special tax rate of 30 percent to be paid with the standard taxation option, but at the taxpayer's regular tax rate on request . The standard taxation option can be advantageous if the collectively agreed income tax on profits is less than 30 percent of the assessment base.

Calculation of taxable profit

The capital gain is determined by the difference between the proceeds and the acquisition costs, whereby a distinction is made between old and new properties in terms of the acquisition costs. When making the distinction, it depends on whether the property to be sold was subject to tax on March 31, 2012 (whether the ten-year speculation period according to the legal situation before the 1st Stability Act 2012 has not yet expired). The ten-year speculation period and a subsequent tax-free sale were abolished on April 1, 2012 with the 1st Stability Act 2012.

Old plots

Properties that were purchased before March 31, 2002 are considered old properties. The acquisition costs for these properties are generally determined at a flat rate of 86 percent of the sales proceeds. The capital gain is therefore 14 percent of the proceeds.

New plots

Properties that were acquired after March 31, 2002 or are still to be acquired are considered to be new properties. Here the actual acquisition costs are used and deducted from the proceeds.

Exemptions from real estate income tax

Pursuant to Section 30 (2) 1–4 EStG, income from the sale of private property is exempt from taxation if

  • originate from the sale of homes or condominiums if they have served as the main residence for at least two years from the time of purchase or manufacture until the sale and this has been given up, or if they have served as the main residence for at least five years within the last ten years prior to the sale will give up.
  • originate from the sale of self-constructed buildings if they have not been used for profit within the last ten years
  • originate from the sale of real estate as a result of official intervention
  • originate from exchanges of land in the context of a consolidation or land consolidation procedure, as well as in the context of official measures to improve the design of building land

Web links

Individual evidence

  1. ^ Doralt / Ruppe :: Outline of Austrian Tax Law, Volume I , Vienna 2013, p. 313, RZ 770/1